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Tourism Marketing

TS 6Block 1

By: Niyam R. Shrestha

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Introduction

What is Marketing• Managerial Process• Social Process• Carefully Formulated Programme• Exchange of Value• Selection of targeted markets• Need and Desires of the Targeted market• Assist organisations

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Introduction contd..

Selling and Marketing• Selling Focuses need of seller• Marketing focuses need of buyerFeatures of Tourism Marketing• Tourism is Service product where instead of

selling physical goods and intangible experience is sold

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Marketing Organisations and Managers

• Marketing organisations are designed keeping in view the various marketing functions which may include a marketing director with managers at different levels and for different activities.– Marketing research unit– Marketing planning unit– Advertising and promotion unit– Public relation unit– Product development unit

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Marketing Organisations and Managers contd…

• The main task to be performed by marketing managers at different level– Planning and control tasks– Executive tasks– Coordinating tasks

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Marketing Organisations and Managers contd…

• The personal qualities of Marketing Manager• Very energetic, active, competitive and aggressive by nature• Creative in terms of seeking new opportunities and use them for

benefit of organisation• Good communicator, presenter and advocate• Skill and confidence to analyse , appreciate and interpret the

data in relation to marketing• Quality of judgment for taking marketing decisions and

evaluating risks, good administrator and strategist• Develop a marketing orientation along with sensitivity towards

consumer needs and attitudes.

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Marketing Planning

• Purpose of Marketing Plan:– Providing a well laid down policy and clear

directions for the marketing operation– Coordination of resources– Finding out the strength and weakness– Identifying market segments– Target setting– Assess the controls, areas of diversification,

competitors strengths and weakness

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Marketing Planning …contd..

Issues of marketing plan:• Defining the marketing objectives and goals• Situation analysis-background, forecast, opportunities and

threats and strengths and weaknesses

• Marketing strategy-the target market, marketing mix and level of marketing budget

• The timeframe• Monitoring and control-sales analysis, market share and

expenses, checking customer attitudes toward the products

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Market Segmentation

• “Process whereby producer organize their knowledge of customer groups an select for particular attention, whose need and wants they are best able to supply with their products.”-Victor TC Middleton

• Identify similar wants homogeneous characteristics and need

• Purpose:– Segment the market generating tourists– Identify the prospective tourists according to life styles,

socio-economic status, attitudes about travel..

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Market Segmentation: Approaches

• Cost effective marketing• Identical needs of the target groups are satisfied• To understand what is wanted and who is going

to buy it• Actionable Segmentation

– Past Visitor– Prospective visitors

• Matching followings• Geographics, Demographics, Psychographics and Travel habits

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Market Segmentation: Approaches….contd..

• The segments should be:• Discrete-Separate identity of the sub-group must be

established by using any criteria like income, purpose, interest

etc.• Measurable-The characteristics that distinguish the sub-

groups should be measurable though the available data

• Viable-the projected earnings to be achieved should be more that the costs of designing the market mix

• Appropriate-Showing the inseparability of the tourism product which should contribute to the overall image in the market

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Major Variables

• Geographic Segmentation– The America, the UK, Europe, Middle East, Far East,

Australasia• Demographic Segmentation

– Divided according to age, sex, family size, fimily life cycle, income occupation, education, religion, race, and nationality

• Psychographic Segmentation– Customers are divided according to: Social status, life styles,

personality characteristics (upper class, middle class & lower class, risk taker, adventurous)

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Major Variables…contd..

• Behavioral Segmentation– Segmented on the basis of their knowledge, attitude,

use or response to tourism product• Occasions-business, seminar, holiday or visiting friends

and relatives• Benefits-consumer look for in the product, kinds of people

who look for each benefit and major brand that each benefit

– Core benefit segments• Quality buyer-more concerned by the product image• A service buyer-chooses a product which provide best

service• Economy Buyer-low cost product

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Major Variables…contd..

• Price Segmentation– High spenders and are prepared to pay high prices-budget tourists– Low priced vacation segmentation– Moderately price vacation segmentation

• Other determinants– Distance traveled-long haul, mid haul or short haul– Duration of trip– Time of travel-summer, winter– Organization of trip-whole tour but independently, only flight

ticket, limited period package-luxury or economy– Travel Motives-culture tours, wild life, beach tours, adventures

tours-health, sports, relaxation, sun-tan, refreshing, flirt and romance..

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Tourism Markets: International and Domestics

• International tourist-foreign passport– Leisure, recreation, health, study, holiday, religion

and sport– Business, family, mission or meeting– Not regarded as tourist-employment, to be

resident and excursionists• Excursionist-stay less than 24 hrs, ship cruise, do

not spend night accommodation.

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World tourism market

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Market for Indianationality wise foreign tourist arrival in India 2008-2010

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International tourism arrivals

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Domestic Market in India

@N.R Shrestha

Domestic Tourist Visits (In Million)Years Number of Domestic Tourist Visits (in Million) % Change

2001 236.5 7.52002 269.6 14.02003 309.0 14.62004 366.2 18.52005 391.5 7.02006 462.3 18.02007 526.4 13.92008 563.0 7.02009 668.8 18.82010 740.2 10.7Source: Retrieved from http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/rs_india_domestic.pdf